Has Pizza Peaked? Domino's Pizza CEO Exits After Move Into Chicken.
The head of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached peak pizza while expanding the chain into poultry items has been removed after disagreements with its governing body.
Executive Shake-Up
Andrew Rennie is exiting after only 24 months in charge, and will be succeeded on an temporary basis by the organization's chief operating officer, Nicola Frampton, while Domino's seeks a new leader.
Rennie, who worked for Domino's for more than two decades, had attempted to shift Britain's biggest pizza delivery company towards fried chicken, stating recently there was not “huge potential” left in the UK's pizza market. He said chicken was the most rapidly expanding food category in the globe.
Board Friction
It is understood that there was tension between Rennie and the directors over his approach and direction, although the company's release said he was leaving “as a joint decision”.
Recent Product Launch
In September, Domino's introduced its poultry offering – which the former chief called a “significant new phase” for the company – and is testing it in select stores in the north-west of England and the province.
While the company is still planning to expand it across its almost 1,400 stores next year as planned, it regards chicken products as an addition to its main pizza offerings.
Leadership Statement
Ian Bull, the Domino's chair, said: “The board believes that there are a series of prospects to enhance value and performance improvement in our primary operations. We are focused on identifying the right chief executive to oversee the careful implementation of that growth strategy.”
Market Challenges
Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said transactions declined by 1.5% in the third quarter. In August, it warned that the takeaway market had “become tougher” as it blamed economic uncertainty in the lead-up to the government announcement and rising wage costs for weaker-than-expected sales and a 15% drop in half-year profits.
Competitors are also experiencing difficulties. Another major chain disclosed the shutting of multiple locations a last month, after the company behind its UK venues faced financial collapse.
Wellness Initiatives
Trying to keep up with customer preferences towards balanced diets, the company has rolled out light products, such as its thin-crust range of pizzas below 400 calories as well as meat-free and gluten-free pizzas. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has over 2,100, while a personal has 909 kcal.
Interim Leadership
Nicola Frampton has been with Domino's since the recent past, and had a background at the betting firm William Hill. It is understood that she prefers not to take on the CEO position on a full-time basis.
She said: “Our team has a multiple current growth and performance initiatives that we will be dedicated to executing at pace.”
She said these comprised additional efforts on the organization's procurement system and product development, and its loyalty scheme.
The pizza chain is also without a full-time finance director until March 16, when Andrea joins from the drinks company C&C Group. Until then, Richard Snow serves as interim finance chief.